Tips on Classic Car Insurance

There are two basic choices when it comes to insuring a classic car. You can either negotiate with your mainstream insurer and wind up paying more money for coverage that may not accurately represent the true value of your car, or you can opt for collector car insurance, and accept the restrictions that come with such coverage. In order to determine which choice is best for you, ask yourself the following questions:

• How often do you drive it?
• Where do you store it?
• Do you have another car?
• Are there other drivers of this car?
• Has this car been modified?

Standard Insurance
If your classic Ford is also the car you drive to and from work every day, or if there are other members of your family who drive it, you may want to work with your normal insurance company. Here’s what to know about mainstream insurers:

• Valuation: Your value will be based on “actual cash” value, which is blue book value minus depreciation. You may, if your insurer is incredibly flexible, be able to boost the value a little, to a coverage limit you and your agent agree upon but you’ll have to provide an appraisal and a list of sale listings for cars the same age and condition as yours, to support your numbers. As well, your insurer will not be required to pay out the full coverage amount, merely “up to” it.

• Modifications: Minor mods – wheels, tires, paint – are not a problem, though you must disclose them, and provide supporting documentation if you believe they improve your car’s value. Anything you do to the body or engine – especially the engine – will likely cost you a small fortune in premium, or send you to a collector car insurance company.

Collector Car Insurance
If your mustang is not a daily-driver car, no one else but you (or other adults who are experienced drivers) has access to it, and you store it in a locked garage when not in use, a collector car policy may be the way to go. These policies, backed by companies who specialize in antique, rare, or unique vehicles, are based on a different kind of valuation – agreed value – which is what you typically do not get from a mainstream insurer.

However, collector car policies typically come with a list of rules and restrictions. Here are some of the most common:

• You must be an adult driver, with significant (at least ten years) driving experience in order to qualify.
• You must have a daily driving vehicle that is adequately insured.
• Your driving record must be clean.
• There are limits to the amount of driving you can do, generally under 3,000 miles/year.
• Your car may have to meet certain age requirements. This varies from state to state, but is usually fifteen years or older.
• Many collector car policies have “proximity” clauses, requiring you to be in or near the car in order for it to be covered.

Despite the restrictions, you’ll likely find that collector car insurers are more forgiving about modifications, so if you’ve rebuilt the engine of your ‘stang, they may still cover it. Also, premiums are often lower than mainstream policies, and often there is little-to-no deductible.

Whichever method of insuring your classic muscle car you ultimately select, be sure that you DO choose something. Even classic cars can still be ticketed for no insurance, after all.